Providing Benefits for Life

Public Employees' Retirement System of Mississippi

A New Member's Guide

Welcome AboardCongratulations on your new job! Among

the benefits offered in your employer's

human resources package is membership

in the Public Employees’ Retirement

System of Mississippi (PERS).

Your MembershipPERS covers employees of state

agencies, public schools, community

colleges, universities, and participating

political subdivisions like cities and

counties, and participation is mandatory,

which means you are required to contribute

a set percentage of your salary toward

your retirement while you are employed in

PERS-covered service. Additionally, your

employer pays contributions to the plan

so that, once you retire, you will receive

monthly benefits for life. Furthermore, the

money you contribute is tax-deferred until

you begin receiving retirement benefits or

unless you refund, which you may only

do if you terminate employment from all

PERS-covered employers. You cannot

receive loans, partial refunds, or hardship

withdrawals of your contributions.

As a new member, your first step toward

retirement is to become vested, which

happens when you have worked the

required number of years of service as

a contributing member. Being vested

entitles you and your beneficiaries

to certain benefits when you reach a

specified age or years of service. If you

became a member of PERS on or after

July 1, 2011, you are in PERS Retirement

Tier 4 and must work eight years to vest.

You remain a member of PERS as long

as you leave your funds in your member

account. Your membership can only be

terminated by refunding or upon your

death.

Never Too Early to PlanContributing toward your retirement may

not be your top priority right now, or even

something you want to do. But making the

sacrifice now could mean greater peace

of mind and stability later.

One of the best starting points for

planning for your future is to understand

the benefits offered to you and your loved

ones by PERS. This guide can provide

you with a general overview about your

retirement plan; however, we encourage

you to read through the PERS Member

Handbook (found online) or contact us

any time you have a question.

Welcome to PERS

Your Benefits with PERS

Protecting Your Loved OnesPERS provides disability and survivor

coverage to help give you peace of mind

about the well-being of you and your loved

ones should you become permanently

disabled or die before retirement. Details

on each of these benefit plans and eligibility

requirements are provided in the PERS

Member Handbook, PERS Disability

Retirement Guide, and PERS Survivor

Retirement Guide (all found online).

Guarding Your AssetsPERS is administered by its 10-member

Board of Trustees, which includes the state

treasurer, one gubernatorial appointee, and

eight trustees elected by members like you.

The Board, in conjunction with its consulting

actuary, monitors System funding to ensure

the plan remains financially sound.

Keeping You InformedAlong with providing a statement about

your account status every fall, PERS

provides newsletters, annual reports,

educational opportunities, and a team of

dedicated and trained staff to answer your

questions or provide you with information

should you need to contact PERS. You may

also request that PERS come to your area

to present an Early Career/New Employee

seminar. To request this seminar, simply

e-mail retirementeducation@pers.ms.gov.

Two Types of PensionsThere are basically two types of

pensions: defined benefit plans and

defined contribution plans.

Defined Benefit PlansPERS is a defined benefit plan, which

is a plan designed based on strength in

numbers, automatic participation, and

pooled risk so that members may receive

a benefit for life at retirement.

While you and your employer contribute

to PERS on your behalf, your benefit is

not based on these contributions. Instead,

your benefit is based upon a formula

that factors your years of service credit

and your average compensation.* The

contributions plus investment earnings

on those contributions constitute the

trust from which benefits are paid. These

investments are handled by professional

investment managers hired by the PERS

Board of Trustees.

Defined Contribution PlansUnder a defined contribution plan—

like 401(k), 403(b), and 457 plans—

retirement benefits are based on the

investment earnings on contributions. You

control how your money is invested, and

you can take your account balance with

you when you leave employment.

* Average compensation is defined as a member’s average salary for the four highest paid years of employment.

2 - PERS New Member Guide www.pers.ms.gov

Retirement StabilityThe best time to begin saving for the

future is now, using the three-legged-stool

approach to retirement planning.

Your defined benefit with PERS will

provide one important leg of retirement

security. In addition, a strong retirement

strategy includes Social Security and

personal savings.

This three-legged-stool approach

provides a strong and stable foundation

for a more secure retirement.

Saving for Even More Peace of Mind

Even Small Investments Can Make a DifferenceRegardless of whether you are a couple

of decades or just a few years from

retirement, you should consider enrolling

in Mississippi Deferred Compensation

Plan & Trust (MDC) because small

investments now could result in large

rewards later.

MDC is a voluntary supplemental tax-

deferred retirement savings plan offered

through PERS to all state employees,

elected officials, employees of participating

political subdivisions, and independent

contractors of the state or participating

political subdivisions. It is a convenient and

valuable way to supplement retirement

income regardless of your age and salary

and no matter how investment-savvy you

may be. Plus, plan participation offers two

tax advantages:

• Your current income taxes are

reduced immediately because you

defer part of your compensation.

• Any interest and/or earnings also

accumulate on a tax-deferred basis

until paid.

If you enroll in MDC, the actual amount

you will have at retirement will be

determined by (1) how much you invest,

(2) when you begin investing, and (3)

the performance of your investments.

For example, a biweekly contribution of

$25 ($650 a year) that earns an annual

compounded return of 7 percent, will

produce the following:

• After five years: $3,872

• After 10 years: $9,304

• After 20 years: $27,605

• After 30 years: $63,607

For more information, visit MDC online at

www.mdcplan.com.

www.pers.ms.gov PERS New Member Guide - 3

DisclaimerThis guide is published for members of the Public Employees’ Retirement

System of Mississippi (PERS) to provide general information regarding PERS

laws, policies, and regulations and is subject to periodic revision as laws,

policies, and regulations change. See all current PERS Board of Trustees

Regulations at www.pers.ms.gov/Content/Pages/Board-Regulations.aspx.

PERS administers the benefits described in this guide on behalf of

participating employers. This guide is meant to serve as a general reference

to our members and should not be used as a legal reference or a complete

statement of the laws or administrative rules related to retirement. If any

conflict exists between the information in this guide and the applicable laws or

administrative rules, the laws and administrative rules shall prevail.

Public Employees' Retirement System of Mississippi

429 Mississippi Street, Jackson, Mississippi 39201-1005

800.444.7377 or 601.359.3589

customerservice@pers.ms.gov

www.pers.ms.gov

This guide was revised July 1, 2016.

Other ResourcesThe following resources can be found on the

PERS website.

• PERS Member Handbook

• PERS Disability Retirement Guide

• PERS Survivor Retirement Guide

• PERS Board Regulation 36, Eligibility

for Membership in the Public

Employees’ Retirement System of

Mississippi (PERS)

• PERS Board Regulation 60,

Contribution Rates